HSBC
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bad company

Original Poster:

21,919 posts

295 months

Tuesday 18th February 2020
quotequote all
Pretty awful set of results. Shares still worth buying / holding?

https://www.theguardian.com/business/2020/feb/18/h...

Fanboy911

3,411 posts

120 months

Tuesday 18th February 2020
quotequote all
I think with Brexit Looming London could be hit harder as a consequence.

90% of their cash is made in Asia so just a slim UK presence is really all thats needed

williaa68

1,540 posts

195 months

Tuesday 18th February 2020
quotequote all
Dividend looks unsustainable at those levels but they are maintaining it. Beware if they go for an external CEO he kitchen sinks it and cuts the divi. The stock would get hammered then...

bad company

Original Poster:

21,919 posts

295 months

Tuesday 18th February 2020
quotequote all
williaa68 said:
Dividend looks unsustainable at those levels but they are maintaining it. Beware if they go for an external CEO he kitchen sinks it and cuts the divi. The stock would get hammered then...
Exactly. I’m holding for now but will be keeping a watch on the news & price. Thinking of putting a stop loss in place.

Fanboy911

3,411 posts

120 months

Wednesday 19th February 2020
quotequote all
After only announcing that 35k staff will be laid off in y’day morning papers the cull started immediately and was brutal.

The fact they acted so quickly I think tells you something although they will of course suggest that this new restructuring will help profits going forward.

Gecko1978

12,302 posts

186 months

Wednesday 19th February 2020
quotequote all
5 years of my life in the head office in the investment bank a group function filled with deadwood with too much power. Can't say I am sorry or surprised. In the end all banks need to change post GFC but the ways they are doing it rely on 20th century thinking. Example where I am now a drive for automation but data is inaccurate. So same st data just faster is better than right data with long term saving.


I 8 a 4RE

566 posts

270 months

Wednesday 19th February 2020
quotequote all
Like it or not, Investment Banking has become an American game.
(Nearly) all the American bulge brackets have RoTE well north of 10% as where most Europeans can’t hit double digits.

“How Simple Becomes Complicated” might go the way of Stan Chart as it relates to its U.K. role.

European governments will insist in keeping native GSIBs, but Deutsche, HSBC and the works do not inspire confidence.
Cetrus paribus id put my money in JPMC / GS.

Fanboy911

3,411 posts

120 months

Wednesday 19th February 2020
quotequote all
I 8 a 4RE said:
Like it or not, Investment Banking has become an American game.
(Nearly) all the American bulge brackets have RoTE well north of 10% as where most Europeans can’t hit double digits.

“How Simple Becomes Complicated” might go the way of Stan Chart as it relates to its U.K. role.

European governments will insist in keeping native GSIBs, but Deutsche, HSBC and the works do not inspire confidence.
Cetrus paribus id put my money in JPMC / GS.
Do you think the likes of HSBC and Deutsche will shrink their UK presence to almost nothing ?

With 90% of HSBC's profits being made in Asia i have often questioned their position post Brexit